Insurable interest means that the insured must have a personal stake or interest in whatever is being insured and can only claim on the insurance to the extent of the value of that interest.

Question

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Insurable interest is a fundamental principle of insurance stating that the insured must have a personal stake or financial interest in the subject matter of insurance in order for the policy to be valid. This ensures that the insured does not have an incentive to intentionally cause a loss or damage to the insured property or person. The insured can only claim up to the limits of their insurable interest.

Insurable Interest Means That the Insured Must Have a Personal